Network function virtualization (NFV) is the principle of separating network functions from the hardware they run on by using virtual hardware abstraction. NFV is an industry effort to virtualize network equipment using a general hardware platform, to provide cost reduction, operation efficiency, and agility for new services. The European Telecommunications Standards Institute (ETSI) NFV Industry Specification Group (ISG) is developing a framework for NFV.
A virtual network has a finite quantity of resources. These resources must be coordinated and managed in order to ensure optimal allocation, which may be necessary to achieve proper connectivity. The network services that a virtual network operates must have their lifecycles properly managed. A network functions virtualization management and orchestration (NFV-MANO) system manages and coordinates virtual network functions and their respective network function virtualization infrastructures (NFVI). Current NFV-MANO systems are a single entity, which makes them unsuited for certain network realities in cloud computing systems.